Cash to Serve

Know your cash flows

It is important for a company to know which products and customers are producing the greatest profit, and which may be causing a loss, but it is not always easy to determine and analyze this information. Crucially, are cash flows sufficient to maintain service, and how can they be optimized?

When considering supply chains and profitability, especially with multi-echelon supply chains, the interactions between customers, distributors, suppliers, warehousing, and production can be complex. Each product and entity may be subject to different financial terms, and these may also vary over time. Even with all this information, it can be difficult to produce a clear view of cash flows. Furthermore, relying on predictions based on this information is risky without considering the wider supply chain context.

anyLogistix (ALX) provides a platform for clearly presenting cash flow information and uses simulation modeling to detail how a supply chain works, capturing its rules and its dynamics. These features enable understanding, forecasting, and experimentation.

Cash to Serve Analysis in supply chains with anyLogistix

The cash flows necessary for suppliers and distributors to operate over time can be analyzed with the cash-to-serve statistics. This data, including cash-on-hand, loan, interest, and account information, helps inform decision making and design policies, such as those regarding outstanding payments and down payment ratios.

With regular information from your supply chain, you can create a supply chain digital twin, and benefit from situational insight for agile operational decision making.

ALX details cash flow over time, including:

  • cash on hand
  • loans
  • interest
  • accounts payable
  • accounts receivable
  • payment terms

ALX captures the nature and detail of cash flows in relation to the supply chain. For instance, accounts and payment terms consider loans with interest, delayed payments, and down payments. By understanding cash flows, it is possible to prioritize products and customers so that service levels are met, costs are cut, and margins are improved. Furthermore, with simulation modeling, you can develop optimal and robust supply chain policies for the future.

Download anyLogistix and try the cash-to-serve demonstration simulation.

How to Transform a Supply Chain and Avoid Risks and Losses

Learn from the Supply Chain Digital Transformation white paper
read now